Which of the Following Arguments Is Sometimes Used in Support

question 70

Multiple Choice

Which of the following arguments is sometimes used in support of free trade?

• A) Free trade allows firms to increase output and take advantage of lower average production costs.
• B) Free trade can decrease the competition faced by domestic producers.
• C) Free trade can decrease the diversity of products available to consumers.
• D) Free trade is necessary to national security.

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Definitions:

Recessions

Times of short-term economic downturn characterized by decreased trade and industrial output, typically marked by a reduction in Gross Domestic Product (GDP) over two consecutive quarters.

Stimulus Bill

Legislation designed to boost economic growth and stimulate the economy during downturns, typically through government spending and tax cuts.

Net Exports

The difference between a country's total value of exports and total value of imports.

Domestic Aggregate

A combined total of all economic activities and outputs within a country's borders, often considered in the analysis of economic health.